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BEIJING - FLAG carrier Air China is eyeing high-end passengers in a bid to counter challenges posed by growing fuel costs and a slowing global economy, a report said on Thursday.
Foreign airlines are usually more attractive to international business travellers because they offer better flight connections and richer frequent-flier benefits, according to the Wall Street Journal.
But being the sole passenger-airline partner of the Olympics has forced Air China to improve its performance and thus made it more confident it can compete with foreign rivals, the report said, citing company chairman Mr Kong Dong.
'The Olympics were a catalyst for upgrading our service,' Mr Kong said.
Air China's passenger load factor, or percentage of seats filled, for premium-class seats rose 2.9 per cent year on year in the first half of 2008 after it renovated facilities from reclining seats to inflight entertainment.
The company has benefited from the recent appreciation of the Chinese currency against the dollar in offsetting soaring fuel costs, the report said.
However, the financial cushion could vanish if the slowing global economy and China's surprise this week to cut interest rates cause the yuan to change course and weaken against the greenback, it added. -- AFP
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